Do Depositors Respond to Banks' Social Performance?

• 成果类型: Article
• 署名作者: Chen, Yi-Chun; Hung, Mingyi; Wang, Lynn Linghuan
• 署名单位: City University of Hong Kong; Hong Kong University of Science & Technology; University of Hong Kong
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2019-0653
• 发表日期: 2023
• 页码: 89-114
• 关键词: market; RESPONSIBILITY; TRANSPARENCY; insurance; contagion

摘要

We study whether and how banks' social performance affects depositors, who hold demandable debt with pervasive government protection. Exploiting the regulatory releases of bank performance ratings for community development and a difference-in-differences design, we find a decline in deposit growth after the release of negative bank social performance. In addition, deposits that are impacted by the negative events flow to nearby banks with high social performance. Further analyses find that the results hold similarly among insured and uninsured deposits and are primarily driven by banks with a large proportion of deposits from high-trust and pro-social counties, and in poor information environments. Overall, we contribute to the literature by documenting the importance of social performance to nonshareholder stakeholders and providing implications for bank stability.